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Mining Stocks' Earnings Slated for Nov 2: KGC, RGLD & More
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Last year had been harrowing for miners given the slowdown in China and a subsequent crash in commodity prices. In the wake of falling demand, the only key to stay afloat was to control costs. Saddled with debt, few companies had to divest underperforming assets.
This year, the scenario has improved with gold and silver being the major movers, owing to the slowdown in China, volatile equity markets due to Brexit and a dovish Fed and introduction of negative interest rates by several central banks (including Japan).
As per the Zacks Industry classification, the mining industry is grouped under the Basic Material sector – one of the 16 broad Zacks sectors. In this sector, 60% of the companies that have reported so far have put up a 25.7% increase in earnings. Considering the companies that are yet to report, the sector’s earnings are expected to rise 2.2% in the quarter. This is a reversal from the 11.6% decline in the second quarter.
The earnings growth graph so far has been encouraging for this quarter with total 58.2% of the companies in the S&P 500 logging growth of 2.2%. Taking into consideration the estimates from the still-to-come 209 index members, total earnings in the quarter is now expected to be up 2.0% year over year on the back of 1.4% higher revenues. This compares favorably with the decline of 2.8% in the second quarter on flat revenues. Though the growth rate is meager, compared to the declines for five consecutive quarters, this is definitely a positive sign. (Read more: An end to the earnings recession).
Let’s see what’s in store for these miners that are set to report quarterly numbers on Nov 2.
Kinross Gold Corporation (KGC - Free Report) engages in the acquisition, exploration, development, and production of gold properties and will report results after the market closes.
The company delivered a negative earnings surprise of 200% last quarter. Kinross Gold has a mixed record of earnings history, beating the Zacks Consensus Estimate in two of the last four quarters and lagging in the other two. The company has a negative earnings surprise of 21.67%.
Kinross is making steady progress in advancing the projects that give it a strong growth profile among leading gold producers. Additionally, it remains focused on managing costs and improving cash flows. However, the company remains exposed to a sluggish global economy and volatility of gold prices. Further, the company needs to improve its reserve base significantly for future growth.
The combination of Kinross Gold’s Zacks Rank #3 (Hold) and Earnings ESP of -20.00% makes an earnings beat unlikely this quarter. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Royal Gold, Inc. (RGLD - Free Report) is a precious metals royalty and stream company, engaged in the acquisition and management of precious metal royalties, streams and similar production based interests. Royal Gold’s first-quarter fiscal 2017 results will be released after the market closes.
Last quarter, the company had delivered in-line results. It has an average negative earnings surprise of 4.69% in the last four quarters.
Royal Gold had announced in October that the company’s stream segment sales along with inventory for gold and silver recorded a rise on a year-over-year basis in its first-quarter fiscal 2017. Royal Gold sold approximately 60,000 ounces of gold and 323,000 ounces of silver under its streaming agreements and ended the quarter with 24,000 ounces of gold and 544,000 ounces of silver in its inventory. Average realized gold and silver prices were a respective $1,329 and $19.52 per ounce sold. On a year-over-year basis, average realized gold increased 6% while average realized silver prices surged 19%.
The combination of Royal Gold’s Zacks Rank #3 and an Earnings ESP of -2.38% makes an earnings beat unlikely this quarter.
Cameco Corporation (CCJ - Free Report) produces and sells uranium worldwide and will report third-quarter results before the market opens.
In the last reported quarter, the company had recorded a loss of 11 cents per share, way below the analysts’ expectations of a loss of a penny per share polled by Zacks. The company has delivered an average negative earnings surprise of 291.80%.
Market conditions have been challenging over the past five years. With weak demand and abundance of secondary material available, the uranium market continues to be oversupplied. Consequently prices have been under pressure.
HudBay Minerals, Inc. (HBM - Free Report) primarily focuses on the discovery, production and marketing of base and precious metals in North and South America. It will report third-quarter results after the closing bell.
Last quarter, the company had delivered in-line results. It has an average negative earnings surprise of 42.47% in the last four quarters.
The company remains on track to meet the cost reduction initiatives announced earlier this year, as well as its production, operating and capital cost guidance for 2016. The combination of HudBay Minerals’ Zacks Rank #4 (Sell) and an Earnings ESP of 0.00% makes an earnings beat unlikely this quarter.
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Mining Stocks' Earnings Slated for Nov 2: KGC, RGLD & More
Last year had been harrowing for miners given the slowdown in China and a subsequent crash in commodity prices. In the wake of falling demand, the only key to stay afloat was to control costs. Saddled with debt, few companies had to divest underperforming assets.
This year, the scenario has improved with gold and silver being the major movers, owing to the slowdown in China, volatile equity markets due to Brexit and a dovish Fed and introduction of negative interest rates by several central banks (including Japan).
As per the Zacks Industry classification, the mining industry is grouped under the Basic Material sector – one of the 16 broad Zacks sectors. In this sector, 60% of the companies that have reported so far have put up a 25.7% increase in earnings. Considering the companies that are yet to report, the sector’s earnings are expected to rise 2.2% in the quarter. This is a reversal from the 11.6% decline in the second quarter.
The earnings growth graph so far has been encouraging for this quarter with total 58.2% of the companies in the S&P 500 logging growth of 2.2%. Taking into consideration the estimates from the still-to-come 209 index members, total earnings in the quarter is now expected to be up 2.0% year over year on the back of 1.4% higher revenues. This compares favorably with the decline of 2.8% in the second quarter on flat revenues. Though the growth rate is meager, compared to the declines for five consecutive quarters, this is definitely a positive sign. (Read more: An end to the earnings recession).
Let’s see what’s in store for these miners that are set to report quarterly numbers on Nov 2.
Kinross Gold Corporation (KGC - Free Report) engages in the acquisition, exploration, development, and production of gold properties and will report results after the market closes.
The company delivered a negative earnings surprise of 200% last quarter. Kinross Gold has a mixed record of earnings history, beating the Zacks Consensus Estimate in two of the last four quarters and lagging in the other two. The company has a negative earnings surprise of 21.67%.
KINROSS GOLD Price and EPS Surprise
KINROSS GOLD Price and EPS Surprise | KINROSS GOLD Quote
Kinross is making steady progress in advancing the projects that give it a strong growth profile among leading gold producers. Additionally, it remains focused on managing costs and improving cash flows. However, the company remains exposed to a sluggish global economy and volatility of gold prices. Further, the company needs to improve its reserve base significantly for future growth.
The combination of Kinross Gold’s Zacks Rank #3 (Hold) and Earnings ESP of -20.00% makes an earnings beat unlikely this quarter. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Royal Gold, Inc. (RGLD - Free Report) is a precious metals royalty and stream company, engaged in the acquisition and management of precious metal royalties, streams and similar production based interests. Royal Gold’s first-quarter fiscal 2017 results will be released after the market closes.
Last quarter, the company had delivered in-line results. It has an average negative earnings surprise of 4.69% in the last four quarters.
ROYAL GOLD INC Price and EPS Surprise
ROYAL GOLD INC Price and EPS Surprise | ROYAL GOLD INC Quote
Royal Gold had announced in October that the company’s stream segment sales along with inventory for gold and silver recorded a rise on a year-over-year basis in its first-quarter fiscal 2017. Royal Gold sold approximately 60,000 ounces of gold and 323,000 ounces of silver under its streaming agreements and ended the quarter with 24,000 ounces of gold and 544,000 ounces of silver in its inventory. Average realized gold and silver prices were a respective $1,329 and $19.52 per ounce sold. On a year-over-year basis, average realized gold increased 6% while average realized silver prices surged 19%.
The combination of Royal Gold’s Zacks Rank #3 and an Earnings ESP of -2.38% makes an earnings beat unlikely this quarter.
Cameco Corporation (CCJ - Free Report) produces and sells uranium worldwide and will report third-quarter results before the market opens.
In the last reported quarter, the company had recorded a loss of 11 cents per share, way below the analysts’ expectations of a loss of a penny per share polled by Zacks. The company has delivered an average negative earnings surprise of 291.80%.
CAMECO CORP Price and EPS Surprise
CAMECO CORP Price and EPS Surprise | CAMECO CORP Quote
Market conditions have been challenging over the past five years. With weak demand and abundance of secondary material available, the uranium market continues to be oversupplied. Consequently prices have been under pressure.
Surprise prediction is difficult for Cameco Corporation as it has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
HudBay Minerals, Inc. (HBM - Free Report) primarily focuses on the discovery, production and marketing of base and precious metals in North and South America. It will report third-quarter results after the closing bell.
Last quarter, the company had delivered in-line results. It has an average negative earnings surprise of 42.47% in the last four quarters.
HUDBAY MINERALS Price and EPS Surprise
HUDBAY MINERALS Price and EPS Surprise | HUDBAY MINERALS Quote
The company remains on track to meet the cost reduction initiatives announced earlier this year, as well as its production, operating and capital cost guidance for 2016. The combination of HudBay Minerals’ Zacks Rank #4 (Sell) and an Earnings ESP of 0.00% makes an earnings beat unlikely this quarter.
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>